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Submission of statement in form 49C by non-resident having liaison office in India

Foreign companies or firms or associations of individuals operate in India through a branch or liaison office after approval by the RBI. The branch constitutes a permanent establishment of the foreign entity and is, therefore, required to file a return of income along with requisite details. A non-resident does not file a return of income with regard to its liaison office on the ground that no business activity is allowed to be carried out in India.

To seek regular information from non-residents regarding the activities of their liaison offices in India, section 285 has been inserted with effect from June 1, 2011. Under the section, every person having a liaison office in India will have to file a statement in Form No. 49C pertaining to the liaison office within 60 days from the end of the financial year (i.e., on or before May 30 after the end of the financial year).